1. Field of the Invention
The present invention generally relates to the distribution of periodicals, and more particularly to a method for distributing a periodical in such a way that new subscription orders are filled quickly.
2. Discussion of the Related Art
It has been reported that each year over one billion single-issue copies of magazines are sold through over 165,000 retail points of sale in the United States. As is known, the cost of a single issue, or the xe2x80x9ccover price,xe2x80x9d is often as much as four times higher than the pro rata price of a single issue through a subscription. Despite the higher prices, consumers are often willing to purchase single issues from retail outlets because of convenience and timeliness.
However, some consumers decide to forgo the advantages of newsstand copies and purchase longer-term subscriptions to periodicals. There are a wide variety of well-known methods for subscribing to a periodical. For example, if a consumer wishes to subscribe to a magazine, the consumer may purchase a single issue at a retail outlet and mail back a xe2x80x9cblow-inxe2x80x9d or xe2x80x9cbind-inxe2x80x9d card enclosed in the magazine issue. Publishers place blow-in subscription cards by loosely inserting the cards into periodicals, such as magazines, using a method of air injection. Publishers insert bind-in cards into the periodicals by, for example, binding subscription cards into issues during the printing process. Publishers, acknowledge that these subscription cards are the most profitable means for the publisher to gain circulation. Nevertheless, various shortcomings arise from the traditional methodologies, which do not promote, and in fact hinder, consumers of single issues from subscribing to the periodicals.
One such shortcoming involves lost revenues to the retailer. Retailers carry single-issue periodicals predominantly for impulse purchases. However, if a consumer purchases a single-issue periodical at a retail outlet and then subscribes to the periodical by a blow-in or bind-in card, the retailer earns no additional revenue from the subscription. In addition, subscription cards contained in retail copies encourage consumers to buy a subscription that deprives the retailer of potential revenue from future single-issue sales to that consumer. Thus, retailers have no incentive to encourage purchasers of single issues to purchase subscriptions.
Several other shortcomings affect the consumer. For example, the initiation of a subscription by a blow-in or bind-in subscription card requires much time and patience on the part of the consumer. Such a subscription frequently takes weeks for processing. Indeed, federal rules require, when appropriate, that magazine publishers denote a waiting time disclaimer: xe2x80x9cAllow 4-8 weeks for your first issue to be mailed.xe2x80x9d In addition, due to processing and delivery delays, the consumer may not actually receive the first issue of the magazine for ten to twelve weeks from the date of subscription. The uncertainty of when the first issue of the subscription will arrive often results in missed issues. In addition, purchasing subscriptions using subscription cards creates a risk of loss to the consumer because the consumer must deposit the subscription card in the mail, after which the consumer often has no record or invoice of the transaction.
Still other shortcomings for the consumer arise from the method of payment. Payment under the traditional subscription method constitutes an inconvenience for the consumer because the only way to enclose payment with a blow-in or bind-in subscription card requires that the consumer enclose the card and payment in an envelope with accompanying postage. Even if a toll-free number is provided for initiating the subscription, the call itself inconveniences the consumer. Furthermore, if payment is not made at the time of ordering, a two-step process is required: first, the submission of the blow-in or bind-in card, and second, the payment of a bill. This two-step ordering process is not only inefficient but also wastes the consumer""valuable time. Furthermore, when paying the bill, the consumer must again correspond with the magazine publisher, paying an invoice by check and returning the payment by mail. Due to processing and delivery delays, the consumer may even receive multiple invoices of the bill, even though payment has already been made. These incidents of inefficiency not only inconvenience the consumer and increase the costs and efforts of the magazine publisher, but also may jeopardize the goodwill of the magazine in the consumer""mind.
Another shortcoming for the consumer, regarding the method of payment, relates to the inability to pay with cash. There is presently no ready means for a consumer to subscribe to a periodical and pay with cash, except for the enclosure of cash in the mail, which is discouraged. The transmittal of cash in the mail, however, presents a threat of loss. Indeed, even the United States Postal Service warns consumers against sending cash through the mail. This inconvenience is particularly meaningful because some consumers may not wish to pay for a subscription to a controversial magazine by check or credit card, as these forms of payment serve as records of the transaction.
Still another shortcoming for the consumer in dealing with the method of payment involves the cost of the initial single-issue periodical. If a consumer subscribes to a periodical by responding to a blow-in or bind-in subscription card, the consumer loses the benefit of paying the lower subscription price for the first issue. Normally, the consumer initially purchases the single-issue periodical at full price, after which he pays the discounted price for the subscription. Thus, even when the consumer chooses to subscribe to a periodical following a single-issue purchase, the consumer always loses the initial investment of the purchase price of the single issue.
Yet other shortcomings affect the periodical publishers. Under the traditional subscription methodologies, publishers suffer reduced subscription revenues from consumers who might have purchased a subscription at the time they purchased the single-issue periodical at a retail outlet. Because the sale of periodicals at retail outlets depends primarily upon impulse sales, the inability to initiate an instantaneous subscription is believed to reduce subscription volume for periodical publishers. Also, outside the retail environment, a consumer may subscribe to a periodical in response to direct correspondence or indirect solicitations through the mail, telephonically, or through electronic means, such as e-mail. Nevertheless, under these circumstances, due to processing and mailing delays, the consumer still has no access to the current issue of the periodical, and the publisher loses these single-issue sales.
There have been various attempts to overcome these and other shortcomings. Indeed, U.S. Pat. No. 5,926,796 (hereinafter the ""796 patent) alleges that various xe2x80x9cattemptsxe2x80x9d have been made to solve the problems associated with initial periodical subscriptions. One attempt described in the ""796 patent involved the sale of gift subscriptions at retail outlets. The consumer could purchase a box containing a gift card to be sent to the recipient, a magazine activation card to be sent to a processing center, and the envelopes for both sets of cards. The consumer would send the gift card to the recipient and the activation card to a processing center. The retailer would retain a percentage from the purchase price and remit the balance of the payment to the processing center. Upon receipt of the activation card from the consumer and the payment from the retailer, the processing center would take a percentage from the payment and forward the card and the balance of the payment to the magazine publisher.
This attempt allegedly fails to even address, much less overcome, the inconveniences associated with the traditional subscription methodologies. For example, this attempt provided no solution for the lengthy processing time required by the traditional methodologies. Also, this attempt provided no mechanism by which the subscriber could receive the current issue of the periodical as the first issue of the subscription. Furthermore, even if the consumer purchased the current issue concurrently with this attempt, the consumer would still not obtain the benefit of that issue in the subscription price.
Another attempt to overcome the inconveniences of the traditional subscription methodologies, as described in the ""796 patent, included the retail sale of subscriptions at bookstores. The subscriptions were offered as part of a shelf-displayed package placed on a hook. The consumer could purchase one of the packages and subscribe to a periodical by paying for the package at the retail point-of-sale and then sending the pre-paid subscription activation card to the fulfillment house. Still another attempt incorporated the sale of subscriptions at specialty subscription kiosks. These kiosks comprised a computer system utilizing touch screen technology to enable consumers to select and purchase either a subscription or a gift subscription. The consumer could pay for either type of subscription at the kiosk by credit card, and the kiosk would issue a receipt for the transaction. For gift subscriptions, the subscription kiosk would also dispense a gift card. For both types of subscriptions, the kiosks informed consumers of a four-to-eight week delay before the arrival of the first issue.
Allegedly, none of these attempts solved the inconveniences of the traditional subscription methodologies. These attempts incorporated significant delay due to processing requirements. Indeed, the subscription kiosk attempt specified a four-to-eight week delay. In addition, none of these attempts allowed the consumer to receive the current issue of the periodical with the subscription. Also, the attempts made no provision for a consumer to benefit from a subscription in the price of the current issue.
The invention of the ""796 patent disclosed an apparatus and method for selling subscriptions to periodicals in a retail environment. The ""796 patent disclosed an apparatus that comprises a point-of-sale (POS) terminal, a POS controller, a retail subscription system. The POS terminal allows a cashier to enter subscription sales data into the POS controller. The POS controller maintains databases on available subscriptions and produces databases containing data relating to subscriptions sold to consumers. The retail subscription system verifies the subscriptions by reference to its own databases and transmits the subscriptions to a fulfillment house for distribution.
The ""796 patent also disclosed a method for establishing a subscription to a periodical at a point-of-sale terminal, comprising the steps of receiving at a point-of-sale terminal a single issue of a periodical, receiving at the point-of-sale terminal a subscription card requesting a subscription to the periodical (the subscription card containing a first set of subscription information), inputting into the point-of-sale terminal a second set of subscription information (the second set including subscription price and term), receiving payment for the subscription, generating a receipt containing the subscription price and term, and providing the single issue as the first issue of the subscription.
Notwithstanding the alleged improvements of the ""796 patent, other shortcomings remain. Perhaps the most significant shortcoming is the continued risk that consumers will miss one or more issues of a periodical before delivery of the periodical to the consumer""premises begins. In the case of a weekly periodical, such as Time or Newsweek magazines, an 8 to 12 week delay in the initiation of the subscription may result in 7 to 11 issues of the subscription being missed by the consumer (all except the first issue which was purchased at the retail POS).
In addition, the system and method of the ""796 patent fails to address shortcomings of other subscription distribution methods. For example, subscriptions made through subscription agents by mail, phone, e-mail, web site, etc. still suffer the now customary delay in the initial fulfillment of new subscriptions. In addition, the collection and recycling process of otherwise unsold retail copies of periodicals implicates additional costs and expenses.
Accordingly, it is desired to provide a method for distributing periodicals in such a manner that new subscriptions can be more quickly filled.
Certain objects, advantages and novel features of the invention will be set forth in part in the description that follows and in part will become apparent to those skilled in the art upon examination of the following or may be learned with the practice of the invention. The objects and advantages of the invention may be realized and obtained by means of the instrumentalities and combinations particularly pointed out in the appended claims.
To achieve the objects and advantages of the present invention, the present invention is directed to a method for distributing early issues of a periodical subscription to a consumer. Broadly, the method involves a redirection of periodicals from a retail point of sale to a consumer, during an interim period from a time when a subscription request is made and conventional delivery of the subscription begins. In accordance with one aspect of the invention a consumer places an order for a subscription to a periodical, which is to be delivered to the consumer. Then, a subscription agent or other entity determines when the subscription (by conventional delivery mechanisms) will start being delivered to the consumer (i.e., which issue will be the first issue received by the consumer). Then, interim issues are redirected from a retail point of sale to the consumer premises.
In one distribution method, a wholesale distributor may redirect unsold periodicals from a retail point of sale to a consumer premises. More particularly, unsold issues of a periodical that are normally retrieved by a wholesale distributor and delivered to a shredder/recycler, may be mailed or otherwise distributed to a consumer until the consumer begins to receive the subscription through conventional distribution mechanisms.
In accordance with one aspect of the present invention, periodical subscriptions may be initiated from a retail point of sale. This step in the process may be done in any of a variety of ways. In one scenario, the consumer may provide the subscription information ordinarily provided to a subscription agent directly to a cashier at the retail point of sale. This information may then be relayed from the retailer to the subscription agent, which may interface with a wholesale distributor to obtain interim issues of the periodical(s) to supply the consumer. The consumer may initiate a subscription at the same time that the consumer purchases and receives a first issue or copy of the periodical.
Another way in which this aspect of the invention may be implemented is through the distribution of kiosks or point of sale terminals at a retailer. Using a kiosk, or point of sale terminal, a consumer may scan the bar code of a given publication (using a bar code scanner on the kiosk). The kiosk may then print a subscription information card, which the subscriber may then take to the cashier for payment. In one implementation, the payment could be made for the entire subscription. In another implementation, the payment made to the cashier may be for the single issue obtained by the consumer (at the reduced, subscription price). That payment may be relayed from the retailer to the subscription agent, and the payment may be credited towards the subscription price. The subscription agent may later bill the consumer for the remaining balance of the subscription.